Ukraine's national bank proposes sanctions against Russian banks

Ukraine's National Bank is proposing to sanction local subsidiaries of Russian banks, the bank's First Deputy Governor Yakiv Smolii said Wednesday.

According to Smolii, the sanctions will target Ukrainian subsidiaries of Russia's Sberbank and VTB, as well as BM Bank, Prominvestbank and VS Bank, APA reported citing Sputnik International.

"Under these sanctions the subsidiaries will be prohibited to carry out any financial operations in the interest of their mother-banks, including inter-bank loans, deposits, subordinate debts, purchase of shares, etc," Smolii said adding that these measures will protect the interests of Ukrainian customers.

Earlier on Wednesday, the National Security and Defense Council of Ukraine asked the National Bank and the Security Service of Ukraine to submit their proposals on sanctions against banks, some of whose shares are owned by Russian state banks.